Dairy Heat Stress Insurance

Protect your dairy herd with NFU Mutual’s award-winning Dairy Heat Stress Insurance

As temperatures rise, heat stress in dairy cattle is becoming a growing challenge for farmers. Research undertaken in 2022 by Dr. Tom Chamberlain, in conjunction with Lallemand Animal Nutrition, shows that heat stress in dairy cattle can cost farms anywhere from £24,000 to £90,000 annually, depending on herd size. These losses stem from reduced milk yields and health impacts.

That’s why we have introduced the UK’s first Dairy Heat Stress Insurance product, which has been developed with Skyline Partners and is underwritten by Markel, to protect your business from the some of the financial impacts of extreme weather.

What is heat stress?

Heat stress occurs when cows retain more heat than they can release, affecting both indoor and outdoor herds. The cause is due to an increase in temperature when there’s high ambient humidity in the local environment. To monitor heat stress levels, the industry uses the Temperature Humidity Data (THD) which indicates how severe the condition could be and suggests that action needs to be taken.

Why is Heat Stress a problem?

Heat stress amongst cattle continues to be a significant issue for farmers. In recent years industry studies have highlighted the condition and the impact it can have on farm businesses. It’s generally acknowledged that heat stress can result in:

• Reduced milk yields from cows.
• Reduced farm income, putting pressure on fine margins and profitability.
• Health-related issues such as increased risk of disease, lameness and reduced fertility.

How does the product work?

A ‘Parametric Insurance Policy’ operates differently to other forms of insurance policy that you may have purchased from us in the past. Instead of providing insurance coverage for actual loss suffered as a result of heat stress, NFU Mutual's innovative new parametric policy uses a calculation formula to determine any claims payments in the event of an insured event occurring during the policy period.

This is an index-driven parametric insurance policy that uses pre-determined calculations and estimations of loss to protect you against some of the financial losses resulting from the accumulation of extreme heat stress periods, experienced by your dairy herd of animals. The pre-determined calculations and estimations of loss are based upon scientific research and modelling of weather conditions around your insured locations postcode. The policy does not pay out based on or according to any actual loss suffered.

Why choose NFU Mutual Dairy Heat Stress Insurance?

• Tailored Coverage: Choose from three levels of cover to suit your farm’s needs - £50, £75, or £100 sum insured per cow for a minimum of 50 cows.
• No Quibble Claims Approach: Payments are automatically calculated based on weather data and paid within predefined payment periods.
• Flexible Financial Support: Use payouts as you see fit - whether to offset milk yield losses or invest in your farms infrastructure to help alleviate the impacts of heat stress and improve herd welfare.
• Expert Local Support: With over 280 agency offices nationwide, our experts understand your challenges.

Existing NFU Mutual farm insurance customers can purchase this cover between the 6th January and the 1st May, subject to underwriter acceptance, and this would provide cover for identified heat stress events within the 12 month policy period.  

This product has been developed with Skyline Partners and is underwritten by Markel.

Speak with your local NFU Mutual Agent to find out more and they can explain the full details to help ensure the cover is right for you.